Alex is playing his music at full volume in his dorm room. The other people living on his floor find this to be nuisance, but Alex does not care. Alex's music playing is an example of a:
A. positive externality.
B. normative externality.
C. negative externality.
D. Pareto externality.
Answer: C
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All else held equal, economists would prefer a tariff over an import quota because
A. domestic producers can charge higher prices with a tariff than with an import quota. B. compared with an import quota, a tariff enables consumers to pay lower prices. C. a tariff enables the government to collect revenue, whereas an import quota does not. D. a tariff allows the market to adjust import quantities if domestic supply, domestic demand, or world price changes.
Are sales and purchases of used goods counted as part of GDP? Why or why not?
What will be an ideal response?
Which of the following adjust to bring aggregate supply and demand into balance?
a. the price level and real output b. the real rate of interest and the money supply c. government expenditures and taxes d. the saving rate and net exports
Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.
Figure 25.1Refer to Figure 25.1. The movement from C to B could be cause by
A. an increase in the interest rate. B. a decrease in nominal income. C. an increase in nominal income. D. a decrease in the interest rate.